US sanctions Iraqi Deputy Oil Minister over alleged support for Iranian oil sales
Al Jazeera Staff
The US Treasury imposed sanctions on Iraqi Deputy Oil Minister Ali Maarij al-Bahadly, accusing him of helping Iran evade oil export bans. The move comes as Iraq forms a new government, targeting a candidate for Oil Minister and warning pro-Iranian factions.
On May 1st, the Office of Foreign Assets Control (OFAC) of the US Treasury announced sanctions against Iraqi Deputy Oil Minister Ali Maarij al-Bahadly. According to OFAC, al-Bahadly is accused of illegally facilitating Iranian oil exports, leveraging his official positions over many years, from Chairman of the Iraqi Parliament's Oil and Gas Committee to his role at the Ministry of Oil.
OFAC stated that the move aims to increase economic pressure on Iran, amid cautious signs of progress in negotiations between Washington and Tehran. Iranian officials indicated they are reviewing a US proposal.
According to the statement, OFAC also sanctioned three leaders of Iran-aligned armed groups Kata'ib Sayyid al-Shuhada (KSS) and Asa'ib Ahl al-Haq (AAH). Along with Kataib Hezbollah, Washington believes these groups are responsible for attacks on US personnel and civilians.
US Treasury Secretary Scott Bessent declared: "Like a criminal gang, the Iranian regime is looting resources that belong to the Iraqi people. The Treasury will not stand by while Iran exploits Iraq's oil to finance terrorism against the United States and our partners."
OFAC accused al-Bahadly of enabling an Iran-linked oil smuggler named Salim Ahmed Said and the AAH group to seize Iraqi oil products. Last year, the US sanctioned Said for running a network of companies selling Iranian oil under the guise of Iraqi oil to evade sanctions. This smuggler, according to US officials, accessed preferential Iraqi oil supplies and obtained forged documents from Iraqi government officials.
The Iraqi Ministry of Oil has not commented on this information.
The sanctions come as Iraq's designated Prime Minister, Ali al-Zaidi, works to form a new government. Some Iraqi lawmakers and media suggest al-Bahadly was a strong candidate for Oil Minister.
This is one of the rare sanctions by Washington targeting members of the Iraqi government, as the US seeks to curb the influence of pro-Iranian groups. Previously, President Donald Trump publicly rejected the possibility of former Prime Minister Nouri al-Maliki returning to power. The Wall Street Journal, citing Iraqi and US officials, reported that Washington had suspended cargo shipments and some security cooperation programs with the Iraqi military.
Victoria Taylor, a former US State Department official overseeing Iraq under the Joe Biden administration, described the move as "a tough signal from the Trump administration amid ongoing cabinet discussions in Baghdad." Taylor suggested it aims to prevent al-Bahadly from becoming Oil Minister, while sending a clear message that the Trump administration is serious about excluding militias and affiliated individuals from key positions.
Relations between Iran and the US have been tense since joint US-Israel airstrikes in late February. A fragile ceasefire reached on April 8 turned into a struggle over control of the Strait of Hormuz. About one-fifth of global energy exports pass through this narrow waterway. Iranian forces have asserted control over the strait by attacking or threatening vessels, while the US has imposed a naval blockade on Iranian ports, making oil exports impossible.
